GH - Guardant: Double-Digit Sales Projections Come At A Cost

2024-06-06 09:50:33 ET

Summary

• Guardant Health's stock has curled up from lows in the last six months.
• The FDA panel approved GH's Shield blood test, resulting in a positive announcement drift to the upside.
• Q1 2024 earnings showed strong growth, revised guidance, and increased average sales price for the Guardant360 test.

Investment summary

Following my last publication on Guardant Health, Inc. (GH) The stock has drifted sideways and it looks like “hold“ was the right call.

In that report, I noted several factors that I believed would keep GH shares compressed. In particular, price-implied expectations suggested the market had a high required rate of return embedded into GH's stock price. This meant the company had to produce stellar results to surprise investors. Sales growth was noted to be tremendously strong, and the revenue ramp had been linear since 2021. This was a positive....

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